Prada buys fashion rival Versace in $2.2 billion deal
Prada Group has officially acquired Milan fashion rival Versace in a 1.25 billion euro ($A2.21 billion) deal that brings the fashion house known for its sexy silhouettes under one roof with Prada’s “ugly chic” aesthetic and Miu Miu’s youth-oriented appeal.
The highly anticipated deal is expected to revive Versace’s fortunes after its middling post-pandemic performance as part of US luxury group Capri Holdings.
Prada said in a statement on Tuesday that the acquisition was completed after all regulatory approvals were obtained.
Prada heir Lorenzo Bertelli will lead Versace’s next phase as chairman of the board, while also taking on the roles of group marketing director and chief sustainability officer.
The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli said he does not expect to make a quick executive shakeup at Versace.
However, Bertelli said that the company, which is among the 10 most well-known brands in the world, has been underperforming in the market for a long time.
Prada underlined that the 47-year-old Versace brand offers “significant untapped growth potential.”
Versace is in the midst of a creative relaunch under new designer Dario Vitale, who previewed his first collection at Milan Fashion Week in September.
Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018 but has struggled to position Versace’s bold profile in the recent era of “quiet luxury.”
Versace represented 20 percent of Capri Holdings’ 2024 revenue of 5.2 billion euros.
An analyst presentation on the Prada deal said Versace would represent 13 percent of the Prada Group’s pro-forma revenues, with Miu Miu accounting for 22 percent and Prada 64 percent.
Prada Group, which includes Church’s shoes, reported a 17 percent increase in revenues to 5.4 billion euros in 2024.
The Prada Group has already begun preparations to integrate cross-town rival Versace into the Italian production system, and this is a source of pride for the group.
“Making bags for one brand or another, the know-how is the same,” Bertelli told reporters last week at the group’s Scandicci leather goods factory, which produces bags for the Prada and Miu Miu brands and will soon add Versace.
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